In 2017 the Central Bank of Azerbaijan (CBA) operated in the condition of improvement of conjuncture and restoration of economic growth in non-oil sector.
According to CBA’s Monetary Policy Review for January-September 2017, as a consequence of rise in oil price, continuation of tendency to decline in import, as well as extension of export on non-oil sector, surplus in balance of payment was restored and strategic currency reserves increased.
“The CBA pursued anti-inflationary monetary policy in the nine months of 2017. Sources of money supply were under control and adequate interest policy was pursued. Parameters of interest corridor were set by taking into account the economic cycle indicators, especially dynamic of inflation, processes in different segments of the financial markets. Features of transmission of monetary policy have been taken into consideration while making decisions about monetary policy”, the document said.
CBA also continued works on improvement of strategic frame of monetary policy: “Exchange rate of national currency was formed depending upon demand/supply ratio in the currency market. Strengthening of exchange rate of national currency led to dedollarization and had reducing impact on inflationary expectations”.